In a landmark judgment issued on 12 March 2026, the Court of Justice of the European Union (CJEU) ruled that Italy’s requirement for third-country nationals to have resided legally in the country for at least ten consecutive years before qualifying for the guaranteed minimum income (reddito di cittadinanza) is incompatible with EU law. The case (joined cases C-112/22 and C-223/22) reached Luxembourg after two Italian courts asked whether conditioning social-assistance benefits on a decade of residence amounted to indirect discrimination.
![EU Court strikes down Italy’s 10-year residence rule for welfare – opening the door to easier access for recently arrived foreign workers]()
Individuals and employers wondering how to navigate Italy’s complex residence-permit or visa procedures in light of this decision can turn to VisaHQ for help. Through its dedicated Italy page (https://www.visahq.com/italy/), the platform provides up-to-date guidance, document checklists, and application management tools that simplify obtaining the long-term EU residence permit now central to benefit eligibility.
The CJEU agreed, finding that the restriction breaches Article 34 of the EU Charter of Fundamental Rights and Articles 20-24 of Regulation (EC) No 883/2004 on the coordination of social-security systems. The judges stressed that while Member States may introduce qualifying periods, these must be proportionate and cannot effectively exclude mobile workers and their families for an unreasonable length of time. Practically, the decision obliges Italian INPS offices and municipal authorities to process benefit applications from non-EU residents who hold a valid residence permit of at least five years (permesso di soggiorno UE per soggiornanti di lungo periodo) even if they have lived in the country for a shorter period. Lawyers expect a surge of back-dated claims and judicial appeals from workers in construction, hospitality and domestic-care sectors who arrived during the 2020-2025 labour-quota rounds. For employers that provide posted-worker allowances or top-up payroll on the assumption that newly arrived staff do not qualify for state support, the ruling removes a budgeting assumption: HR teams should revisit assignment cost projections and mobility policies to avoid duplicating benefits now available from the state. International assignment managers should also update pre-departure briefings so that employees arriving under the 2026–28 Flussi quota understand their potential entitlements. Politically, the verdict increases pressure on the Meloni government, which had promised to tighten welfare eligibility. The Ministry of Labour has already announced a technical round-table with unions and employers to draft compliance guidelines by the end of March. Failure to amend national legislation promptly could expose Italy to infringement proceedings and financial penalties. Until new rules are adopted, the CJEU judgment has direct effect and courts must disapply conflicting provisions.
Individuals and employers wondering how to navigate Italy’s complex residence-permit or visa procedures in light of this decision can turn to VisaHQ for help. Through its dedicated Italy page (https://www.visahq.com/italy/), the platform provides up-to-date guidance, document checklists, and application management tools that simplify obtaining the long-term EU residence permit now central to benefit eligibility.
The CJEU agreed, finding that the restriction breaches Article 34 of the EU Charter of Fundamental Rights and Articles 20-24 of Regulation (EC) No 883/2004 on the coordination of social-security systems. The judges stressed that while Member States may introduce qualifying periods, these must be proportionate and cannot effectively exclude mobile workers and their families for an unreasonable length of time. Practically, the decision obliges Italian INPS offices and municipal authorities to process benefit applications from non-EU residents who hold a valid residence permit of at least five years (permesso di soggiorno UE per soggiornanti di lungo periodo) even if they have lived in the country for a shorter period. Lawyers expect a surge of back-dated claims and judicial appeals from workers in construction, hospitality and domestic-care sectors who arrived during the 2020-2025 labour-quota rounds. For employers that provide posted-worker allowances or top-up payroll on the assumption that newly arrived staff do not qualify for state support, the ruling removes a budgeting assumption: HR teams should revisit assignment cost projections and mobility policies to avoid duplicating benefits now available from the state. International assignment managers should also update pre-departure briefings so that employees arriving under the 2026–28 Flussi quota understand their potential entitlements. Politically, the verdict increases pressure on the Meloni government, which had promised to tighten welfare eligibility. The Ministry of Labour has already announced a technical round-table with unions and employers to draft compliance guidelines by the end of March. Failure to amend national legislation promptly could expose Italy to infringement proceedings and financial penalties. Until new rules are adopted, the CJEU judgment has direct effect and courts must disapply conflicting provisions.
